06/11/2007


São Paulo will continue 7th in cellular density?

 

São Paulo is the biggest brazilian state in population (41.5 million), cellular subscribers (25 million) and PIB (30.9% from the total of Brazil). It's the third in PIB per capita, behind Distrito Federal and Rio de Janeiro, but is the 7th state in cell phones density in Brazil.

 

 

This situation is starting to change this year. In the first 4 months of 2007 São Paulo grew for the first time with the same tax of Brazil and exceeded other States in which leads density.

 

 

This growth wasn't pulled up by metropolitan region of São Paulo (11). Even though with perspective of a 4th operator (Unicel) and occupying the 13th density position in Brazil (65.25 cell/100 inhab.), this was the lowest gorwth area in the State (2.4%). The biggest growth happened in less dense areas (15, 17 and 18) which grew 4.7 to 6%.

 

 

DDD
Main City
Cellulars
Dens.
Growth Jan-Apr/07
11
São Paulo
14,021
65.25
2.4%
12
São J. Campos
1,264
58.26
3.4%
13
Santos
1,097
59.22
2.8%
14
Bauru
1,190
50.99
4.1%
15
Sorocaba
900
48.49
4.7%
16
Ribeirão Preto
1,600
57.16
2.8%
17
S. J. do Rio Preto
979
49.93
5.0%
18
Presid. Prudente
858
44.78
6.0%
19
Campinas
3,061
60.07
3.4%
São Paulo
-
24,971
60.21
3.0%

 

One of the reasons for São Paulo's growth decrease is less competition between operators in the state. São Paulo is one of the states attended for only 3 cellular operators. Vivo share with CTBC the attendance in the areas 16 and 17. In Minas Gerais, for example, cellular growth increased with the operation of fourth operator (Claro) in the end of 2005. São Paulo's situation:

 

Apr/07
Market Share
Growth Jan-Apr/07
Coverage
Cities
% population
Vivo
43.1%
0.6%
457
98.23
Claro
31.8%
6.0%
622
98.12
Tim
24.9%
3.5%
498
98.6
CTBC
0.2%
-5.4%
24
1.89

 

Claro was the operator with better growth in the year until Abril. Vivo leads in 7 of the 9 areas with Claro being the leader in the areas 16 and 19. Tim occupies the 2nd place in market share in the metropolitan region (11).

 

Another thing to be considered is the higher price of cellular service in São Paulo comparing with other states. The minute of pre-pay cellular in São Paulo, for example, is the most expensive of Brazil. Even more expensive comparing with states that have higher taxes ( ICMS) 35% in Rondônia or Rio 30% in Rio de Janeiro. The ICMS of São Paulo is 25%.

 

You could ask:

  • Will São Paulo improve its position in the density ranking?
  • Would a fourth operator in São Paulo speed up this growth?
  • Why Oi and BrT don't operate in São Paulo's market ?
  • Would a reduction of price in the cell phone's service speed up São Paulo's density growth ?

 

Comment.

 

To send us a commentary, click on: teleco@teleco.com.br

 

Please let us know if you authorize the publication of your commentary.

 

Commentaries

 

Workshop
(in portuguese)
Cellular Market Update

 

 

 

TELECO CONSULTANCY

Reports

Imagem cortesia FreeDigitalPhotos.net

Telecom, Cellular and Capex

Workshops

Market Update

Regulation in Brazil

Consultancy

Studies and Databases

More Products

EVENTS

More Events

REPORTS

Huawei Whitepaper

Mavam




 

 

 

 

 

Print this Page

Add to favorites Communicate errors